Recommendations of The Acquisition Of Abn Amro (B) Case Analysis

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Recommendations of The Acquisition Of Abn Amro (B) Case Study Help

On the basis of above internal and external analysis of the business along with the examination of different options, the company is recommended to consider alternative 3. As alternative 3 would allow the company to expand in global markets with no reduction in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand name individuality. However, it could also think about alternative 2 that could permit the business to access the marketplaces without any possible investment. Although, the business might pursue alternative 1 which would make it possible for the company to focus on prospective global markets instead of the local markets but as the company is highly based on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the considerable decrease in business's income. Therefore, the business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Acquisition Of Abn Amro (B) Case Solution Stores

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the international existence of the business. The closing of domestic stores could highly affect the incomes of the firm as above 90% of its shops are situated domestically and closing those shops would eventually minimize the earnings of the company. The business has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would assist the company to broaden in global markets together with the removal of problems raised in its regional markets connected to its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in revenue from worldwide markets.
• Removal of problems connected to variety.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive profits from the local markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Acquisition Of Abn Amro (B) Case Analysis Stores

Alternative 2 includes the introduction of online market locations through producing an appropriate company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme threat to the market share of business. The competitors are shifting towards click and Recommendations of The Acquisition Of Abn Amro (B) Case Solution stores with Gap presenting Piperline. This shift towards online markets might lower the revenues for business. In this circumstance the business might think about presenting Click and Recommendations of The Acquisition Of Abn Amro (B) Case Analysis stores. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the market position
• Elimination of brand name Uniqueness
• Removal of the fantastic shop experience.
• Danger of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the company could think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of revenues of the company. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding customer base
• Big Revenues
• Expedition of new international markets.
• Boost in earnings from worldwide markets.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.



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